Law Offices of Stephen A. Markey, III, P.C. Newsletter 

When Do I Need to be Concerned with Estate Planning? 

        Many people are under the mistaken impression that they do not need to think about estate planning until they are older. However, regardless of your age, everybody should have a basic estate plan that includes a Last Will and Testament, Power of Attorney, and Advanced Care Directive or Living Will. 

        A Last Will and Testament allows you to direct the distribution of your assets to your beneficiaries upon your death. If you do not have a will at the time of your death, the laws of intestate succession will determine the distribution of your assets, regardless of what your wishes may be. If you are not married, your significant other may be left with nothing. Even if you are married, depending on how your property is titled, your spouse may or may not receive your assets. A will is especially important for people with minor children because wills can identify your desired guardian and establish a trust to provide for your children. 

        You may amend your will at any time. It is a good idea to review it periodically, and especially when your marital status or size of your family changes. At a minimum you should review your will every five years. At the same time, you should review your beneficiary designations for your 401(k), IRA, pension, life insurance policy, etc., since those accounts may be automatically transferred to your named beneficiaries when you die. 

        The second document that every person should consider is a Power of Attorney (POA). A POA allows you to designate a person (called an attorney-in-fact) to manage your assets if you are not available or in the event of your disability or incapacity. There are different types of POA¿s depending on your needs. One type of POA can permit your attorney-in-fact to act for you at any time and another type springs into affect only upon your disability or incapacity. 

        When consulting with a client regarding a Power of Attorney, we typically recommend preparing a Durable Power of Attorney that does not terminate upon your disability. A Durable Power of Attorney will continue beyond incapacity or disability to provide you with a safety net of financial management if you are no longer able to do so. 

        Finally, every person should consider an Advanced Care Directive which is also known as a Living Will. The Teri Schiavo case best exemplifies the significance of this document. A Living Will designates someone to make a range of health related decisions for you when you are not personally able to give informed consent. It also allows you to include any specific instructions you have about the medical procedures you wish, and do not wish, to be performed. A Living Will relieves your loved ones from making tough decisions and can help avoid the need for court intervention when family members disagree on what you would want. 

        If you have any questions regarding estate planning or would like to schedule an appointment to prepare any of the aforementioned documents, please contact our offices. 

The Rest of the "Medical Malpractice Crisis" Story 

        In our Fall 2004 newsletter we told you that Governor Ehrlich and the insurance industry had begun to push for so called "tort reform" as a way to stop frivolous lawsuits which were being blamed for skyrocketing medical malpractice insurance premiums. We told you that bad investments by insurance companies and a down turn in the economy were the real causes of premium increases. We also told you that bad doctors, not victims of malpractice, were also to blame for the increased premiums. In our 2005 newsletter we told you that history shows us that the "medical malpractice crisis" in the mid 1980's turned out to be caused by insurance cycles which follow the market cycle and that in the past as our the economy improved, premiums came down. Unfortunately, following millions of dollars in lobbying by the insurance industry, the Maryland Legislature passed emergency legislation during a special session of 2005, restricting recoveries by victims of medical negligence and subsidizing insurance premiums for doctors. This was in spite of evidence that insurance companies rarely settled or paid claims they considered frivolous (meaning they acknowledged the vast majority of claims brought were meritorious). 

        On December 14, 2006 Maryland's largest medical malpractice insurer, Maryland Mutual Liability Insurance Society of Maryland ("Medical Mutual"), announced it would drop premiums by 8 percent next year. After the insurance industry and some politicians predicted doom and gloom for two years, it appears the insurance cycle has corrected itself with the improved economy. It wasn¿t frivolous lawsuits after all. It was investments by insurance companies that went bad causing a rise in premiums. The decrease in premiums was forced upon Medical Mutual by the new legislation. Medical Mutual would have preferred its traditional practice of providing doctors with rebates to avoid lowering premiums. 

        If you are still not convinced that frivolous claims are not the cause of increased premiums, look at your homeowner's policy or automobile policy. Even without making any claims, both polices have gone up dramatically over the last three years. Fortunately the emergency legislation requires a premium reduction if Medical Mutual reaches certain surplus levels. Unfortunately for the rest of us, homeowners and automobile insurance carriers get to keep the surplus as profits. Don't expect your premiums to go down anytime soon. 

        And now you know the rest of the story. 

ATTORNEY SPOTLIGHT 
STEPHEN A. MARKEY, III 

        Steve is about to begin his twentieth year practicing law since graduating in 1987 from the University of Baltimore. Recently Steve was advised that he has been selected as one of Maryland¿s Super Lawyers for 2007. Super Lawyers are selected by Law & Politics magazine after being nominated by one or more attorneys in the state or region. Following a nomination, Law & Politics researches the attorney for qualifications and ethics before final candidates are submitted to a blue ribbon panel for final review and selection. Only five percent of the lawyers from each state or region are named Super Lawyers. Law & Politics Super Lawyers magazine will be published early next year. Super Lawyers also appear in a special advertising section of Baltimore magazine. 

Baseball Fever 

        As many of you know, outside of the law, Steve's other passion is baseball. Throughout the years Steve has coached his kids in both baseball and softball (and every other sport known to man.) Currently he is a coach for the Churchville Heat 15U Baltimore Metro Baseball Team that his son plays on. Over the years Steve has also represented a number of professional baseball players and currently he represents two minor league players expected to play at the AA level this coming season. Steve has decided to take his baseball passion to the next level. Several years ago Steve started a limited liability corporation named "Next Level Athlete, LLC." This past year Steve purchased the franchise rights to open an Extra Innings Baseball and Softball training facility in the Baltimore/Harford County area. Steve has just finished a transaction to purchase property at the intersection of Fitch Avenue and Rossville Boulevard in Baltimore County where he hopes to break ground on an 18,000 square foot indoor baseball and softball training facility in the spring. If all goes well, it is anticipated that there will be a grand opening of the new facility in August or September of 2007. 

        Extra Innings is a franchise dedicated to providing instruction and a training facility for baseball and softball enthusiasts of all levels. "Extra Innings Baltimore" will have eight pitching and batting tunnels, four coin operated batting tunnels, a circuit training area, a members only area, and a pro shop. 

        Because Steve intends to keep his day job, the facility will be run by Rocky Coppinger, a former Baltimore Oriole and Detroit Tiger, and strength and conditioning will be run by Adrian Parkes who has a Bachelor's degree in Exercise Science from Wesley College. 

        Stay tuned for more information regarding the grand opening.